April 10, 2011

Which trading indicators do you consult while trading forex?

By Planet Wealth

I consult the RSI only. Which indicator do you consult while trading forex?

Topics: trading tips | 3 Comments »

3 Responses to “Which trading indicators do you consult while trading forex?”

  1. Common Sense Says:
    April 10th, 2011 at 10:20 pm

    Using one indicator is really crazy. Two – three is normal. What I consult has nothing to do with what you should consult. The people that are successful in trading develop their own strategies. No one makes money following someone else strategies (&/or indicators).

    By using two indicators for day trading you’ll be profitable in 40-55% of your trades. The real key to success in trading is money management (risk control). You need to start reading some books & become serious in this effort. This can take years to develop these skills (if ever).

  2. Thomas Yin Says:
    April 10th, 2011 at 10:20 pm

    Hi fellow trader,

    You shouldn’t be using only 1 indicator for your trades, be it stock, forex, options or futures, let alone trading forex. You should use around 2 to 4 indicators. Not only that, you should also use support and resistance lines and trend lines to help you.

    Use trend indicators like MACD if you looking to ride the trend to huge profits. Use stochastic for small term trades. Frankly speaking, I use 3 indicators but I only use them to support my decisions for trade entry or exit and not the other way round (use them to make decisions to trade). I mostly make my decisions to go into a trade based on price action. Only price action do not lie and it’s not a lagging indication like most indicators if not all indicators.

    Recently, I learned a system that combines a few indicators to give a signal for my entry trades. Now I do not have to sit at the computer all day just to make sure I don’t miss a single trade. The system will prompt a signal alert to me whenever there is an entry trade for me. I strongly recommend you try it out at the website below.

  3. tonnie Says:
    April 10th, 2011 at 10:20 pm

    I use 3 main indicators, Moving averages, RSI and MACD and combine them into a trading system. and take trades when they all give the a signal in the same direction. Moving averages identify trend, RSI confirms trend, MACD is just an extra confirmation.

    Here is the example of the trading system:
    http://www.forexmarketscience.com/writing_rules_of_forex_trading_system.htm

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